In their assessments of the likely losses the Tohoku earthquake caused to Japanese non-life insurers, prognosticators revealed the companies had accumulated significant residential catastrophe reserves—something that could not be said of insurers in the United States should a similar event happen here.
U.S. generally accepted accounting principles (GAAP) prohibit the use of catastrophe reserves for future events. American International Group Inc. (AIG) referenced this fact when it provided a look at how the earthquake will cause potential losses for Fuji Fire and Marine Insurance Co. Ltd., in which AIG holds a 54.66 percent equity stake.
Fuji Fire and Marine established a catastrophe reserve of about $482 million for claims associated with earthquake damage to personal dwellings, AIG says.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
